Iceland would finally get new government after Left-Green Movement, Independence Party and Progressive Party agreed to form coalition, news wires reported. Greens leader Katrin Jakobsdottir would become PM, country's first Green politician to take the post, while current PM and Independents leader Bjarni Benediktsson would take the financial portfolio.

The formation of a broad coalition government could bring an end to political instability triggered by a string of scandals. In 2016, snap elections were called after the Panama Papers revelations showed several government figures were involved in an offshore tax haven scandal. Benediktsson also called snap election in September, after less than a year in government, as a scandal involving his father prompted a government ally to drop out of his ruling coalition.

Jakobsdottir, whose party finished second at the election, campaigned on a platform of restoring trust in government and leveraging an economic boom to increase public spending. She failed to form a left-leaning government earlier in November, but has previously hinted that she was open to forming a broad-based government.